JACK McConnell has given the go-ahead for the Scottish Labour Party to reassess its opposition to new nuclear power stations, it emerged last night.

The First Minister has approved an internal consultation process which is designed to come up with a new, updated policy on nuclear power. But sources close to Mr McConnell stressed last night that there were no pre-conditions or pre-conceptions in the policy review and it did not necessarily mean that the party would perform a U- turn and back nuclear power.

The Scottish Labour Party has an official policy of "scepticism" about new nuclear power stations in Scotland until the issue of nuclear waste disposal has been resolved.

But the official, government-sponsored investigation into the waste issue is due to report in the next few months and Labour managers have realised that they will need a policy after that has happened. When the waste report is published they will not be able to hide behind that issue any longer.

At the same time, Prime Minister Blair's own energy review is gathering pace and the pressure is growing on the Scottish Labour Party to take a position on the issue.

Many observers expect Mr Blair to back the idea of a new generation of nuclear power stations later this year, with a proposal for at least one new station in Scotland.

While energy policy is reserved, the Scottish Executive has the ability to block any new nuclear stations through the planning process.

The Liberal Democrats are against any new nuclear stations in Scotland and will push Labour to adopt a similar policy. Mr McConnell wants the Scottish Labour Party to have its own policy - even though this could lead to a divide with his coalition partners.

A spokesman for the First Minister stressed that no decisions had been reached and the policy review was not designed to reach a particular conclusion.

He said: "Everything is up for grabs. There are many issues here, we have to have a proper discussion about them, but, unlike the SNP, they will include long-term energy needs and continuing supply of energy."